Success coaching centre
Sec-4 & sec-14
Ph.9782016302, 7737296162, 9672269750
Date- / /2013
Accounting process (1st to 4th unit)
Marks- 35
Test Paper
1. Who is the propounder of Double Entry System
(a) Henery fayol
(b) Lucas Pacilio
(c) Henery Ford
Time: 40 min.
(d) Adam Smith
2.
(a)
(b)
(c)
(d)
Which book is written by Lucas Pacilio among these
Fundamental of accounting
Methods of accounting
Basics of Economics
D. Cumutary
3.
(a)
(b)
(c)
(d)
The receiver is called debtor and the giver is called creditor, this is which rule of accounts.
Personal Accounts
Real accounts
Trading Accounts
Income and Expenditure Accounts
4.
(a)
(b)
(c)
(d)
In which of the following way, a compound journal entry is passed
One particular account may be debit while several other accounts may credited.
One particular account may be credit while several other accounts may debited
Several accounts may be debited and several other accounts credited
Any of above
5. Received a first and final dividend of 60 paise in the rupee from the Official Receiver of Mr. X who owed us Rs.
1000
(a) Discount allowed a/c be debited with Rs. 400
(b) Bad debts recovered a/c be debit with Rs. 600
(c) Bad debts a/c be credited with Rs. 400
(d) Bad debts a/c be credited with Rs. 400
6.
(a)
(b)
(c)
(d)
Which is the correct equation
Outside equity + Profit = total assets
Assets + owners equity = outside liability
Outside equity+ Outside liability = total asses
Outside equity= Assets + liability
7. The assets on 31.12.2006 Rs. 1,60,000 and capital is Rs. 1,45,000. Its liabilities on that date shall be
(a) Rs. 1,60,000
(b) Rs. 3,05,000
(c) Rs. 15,000
(d) Rs. 1,45,000
8. Owner’s equity stands for
(a) Fixed assets minus fixed liabilities
(b) Fixed assets minus current liabilities
(c) Current assets minus fixed liabilities
(d) Total assets minus total liabilities
9. When an account that normally has debit balance actually has a credit balance, a vice versa, it indicates
(a) An unusual transaction must have occurred
(b) An error in recording must have been made
(c) An error in recording may have been made
(d) An entry must have been omitted.
10. Double entry book-keeping involves
(a) Two accounts being affected for each transaction which are equal and opposite to one another
Success coaching centre
Sec-4 & sec-14
Ph.9782016302, 7737296162, 9672269750
(b) Two sets of books being kept for the business
(c) Business book-keeping being kept more than one person
(d) Every entry in the business books being checked twice
11. Debit signifies
(a) Increase in assets account
(b) Decrease in liability account
(c) Decrease in capital account
(d) All of these
12. What is the rule for debit and credit for Nominal accounts?
(a) Debit the receiver, credit the giver
(b) Debit all expenses and losses, credit all incomes and gains
(c) Debit what comes in, credit what goes out
(d) Debit what goes out, credit what comes in.
13. Books of original entry is called
(a) A journal
(b) memorandum a/c
(c) Kachha record
(d) Voucher
14. A cash disbursement may result in
(a) Reduction in one asset and increase in other asset
(b) Reduction in asset
(c) Reduction in liability
(d) All of the above
15. What is the journal entry for transfer of depreciation?
(a) Dr. Depreciation a/c & Cr. P&L a/c
(b) Dr. Depreciation a/c & Cr. Asset a/c
(c) Dr. P&L A/c & Cr. Depreciation A/c
(d) Dr. Assets A/c & Cr. Depreciation A/c
16. The debts written off as bad, if subsequently recovered are credited to
(a) Debtors account
(b) Sale account
(c) Profit and loss account
(d) Bad debts account
17. Which statement is correct?
(a) Cash withdrawal by the proprietor self use is a drawing
(b) Cash withdrawal by the proprietor self use is a capital expenditure expenses
(c) Cash withdrawal by the proprietor for self use is a revenue expenses
(d) Cash withdrawal by the proprietor for self use need not be accounted for in books of account.
18. Bank overdraft accounts is a
(a) Personal account
(b) Real account
(c)Nominal account
(d) None
19. Normally the following accounts a balanced
(a) Personal accounts and nominal accounts
(b) Real accounts and normal accounts
(c) Personal accounts and real account
(d) None of above
20. Which of the following statement is false ?
(a) Wages paid on installation of machinery should be credited to cash account
Success coaching centre
Sec-4 & sec-14
Ph.9782016302, 7737296162, 9672269750
(b) Error of posting of a correctly recorded transaction affects one or more accounts.
(c) Repairs of a machinery purchased second hand should be debited to machinery
(d) Withdrawal of goods by the proprietor of the business should be credited to capital account
21. It is necessary to analysis transaction in term of debit and credit
(a) When journalizing
(b) When posting
(c) At both times
(d) At neither of the times
22. Which of the following accounts have only credit balance?
(a) Reserve fund account
(b) Capital account
(c) Accounts payable
(d) All of these
23. Which of the following accounts is decreased by debit entries?
(a) Salaries account
(b) Bank account
(c) Owner’s equity account
(d) All of these
24. Identify the account which will invariably have a credit balance
(a) Proprietors current account
(b) Discount account
(c) Accounts receivable
(d) Accounts payable
25. Professional fees (earned) account is likely to
(a) Only debit entries
(b) Only credit entries
(c) Both debit and credit entries
(d) None
26. Trial balance is the link between the
(a) Journal and ledger
(b) Journal and final account
(c) Ledger and final account
(d) P & L a/c and Balance sheet
27. Trial balance prepared under method is known as
(a) Simple trial balance
(b) Gross trial balance
(c) Net trial balance
(d) Trial balance appropriation
28. Trial balance is prepared
(a) Annually
(b) Yearly
(c) Quarterly
(b) Based on the accounting period selected by the management
29. Which of the following will cause a mismatch in the trial balance?
(a) Error of principal
(b) Error of omission in a subsidiary book
(c) Wrong totalling in a subsidiary book
Success coaching centre
Sec-4 & sec-14
Ph.9782016302, 7737296162, 9672269750
(d) Recording an amount which is totally different from the actual amount
30. Suspense account
(a) Debit
(b) Credit
(c) Either Debit or credit
(d) None
31. Which of the following will be recorded as Contra Entry
(a) Withdrew from bank for personal use
(b) A cheque received from X lodged into bank on the same day
(c) A cheque received from Y a week earlier lodged into bank
(d) A customer directly deposited the money in our bank account
32. Provision for bad debts is journalised in
(a) General journal
(b) debtors a/c
(c) directly in profit and loss a/c
33. Double entry of which of the following transaction is completed in the cash book itself
(a) Paid rent by cheque
(b) Withdrew from bank for personal use
(c) A cheque received from a customer deposited into bank day
(d) Cash deposited into the bank
34. Purchase day book records
(a) Only cash purchase of trading goods
(b) Only credit purchases of trading goods
(c) Both (a) and (b)
(d) All types of purchases including purchase of capital goods
35. Transactions recorded in the sales book are posted to the ledger
(a) On the debit side of customer’s accounts
(b) On the credits side of customer’s account
(c) No where
(d) Either (a) or (b)
(d) any of the above